Various efforts have been made to devise a system that enables a consumer to easily pay with his or her mobile device at a point of sale (POS) terminal. ISIS and PayPal, for example, have introduced such systems. However, these systems have not yet been widely implemented, and they also do not enable the user to redeem rewards cash or points for payment.
In many cases, account holders do not perceive their rewards program to be particularly useful or valuable primarily because they do not know how to redeem the points or cash value. If an account holder must find and then learn the process and rules for redeeming rewards points, often he or she will not make the effort. Consequently, the account holder does not actually use his or her rewards points, and the issuing bank does not gain the benefit that the rewards program was intended to provide, i.e., increased customer loyalty.
It would be desirable, therefore, to have a system and method that facilitated the use of an account holder's rewards currency, and that also enabled the account holder to use their mobile device to make a payment using their rewards currency.